Telecom tariff hike sparks controversy as NATCOMS, NLC demand sanctions on operators

The National Association of Telecommunication Subscribers (NATCOMS) has called on the Nigerian Communications Commission (NCC) to penalize telecom operators that have prematurely implemented a 50% tariff hike, describing the move as a breach of agreement.

This call comes amidst growing tension between telecom subscribers, labor unions, and regulatory bodies over the sudden increase in service charges.

The National President of NATCOMS, Mr. Deolu Ogunbanjo, expressed his concerns in an interview with the News Agency of Nigeria (NAN), emphasizing that the early implementation of the tariff increase contradicts the agreement between the NCC and the Nigeria Labour Congress (NLC).

On February 3, 2025, the Federal Government and the NLC established a 10-member committee to deliberate on the proposed 50% telecommunications tariff hike. This committee was mandated to review the implications of the increase and provide recommendations within two weeks.

The decision to set up the committee followed a meeting between the government and the labor union, resulting in a Memorandum of Understanding (MoU) that explicitly stated no price hikes should occur before the review process was completed.

Despite this agreement, reports indicate that several telecom operators have already adjusted their tariffs, sparking outrage among stakeholders.

In response to the alleged violation, the NLC has condemned the operators’ actions and called for a partial boycott of services from major providers, including MTN, Airtel, and Glo.

The NLC announced a daily service boycott from 11:00 AM to 2:00 PM, starting February 13, 2025, and extending until the end of the month. The labor union has also threatened a complete shutdown of these companies’ operations nationwide if the tariff hike is not reversed by February 29, 2025.

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NATCOMS’ President, Ogunbanjo, has echoed the NLC’s sentiments, calling for immediate regulatory sanctions. He highlighted that the NCC had agreed to hold a stakeholders’ meeting with the NLC, telecom subscribers, and operators to discuss the tariff changes.

However, he noted that the meeting had yet to take place before some operators unilaterally increased their charges.

“This is an affront, and defaulters should be sanctioned,” Ogunbanjo stated. “We had initially planned to challenge the hike in court but decided to wait for the outcome of the stakeholders’ meeting. It is unacceptable for telecom companies to increase tariffs when the meeting has not even been held.”

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The NCC, Nigeria’s telecommunications regulatory body, had approved a 50% tariff adjustment in January 2025, citing rising operational costs and the necessity of ensuring industry sustainability.

This decision was made under the authority granted by Section 108 of the Nigerian Communications Act, 2003, which empowers the NCC to regulate and approve telecom tariffs and charges.

Telecom operators had originally proposed a 100% tariff increase, arguing that economic challenges, inflation, and foreign exchange volatility had significantly increased their operational costs. The NCC, however, settled on a 50% adjustment after weighing consumer affordability against industry viability.

Industry analysts suggest that the situation presents a complex regulatory dilemma. On one hand, telecom companies face mounting financial pressures due to inflation, currency devaluation, and infrastructure maintenance costs.

On the other, consumer advocacy groups and labor unions argue that the increased tariffs place an additional financial burden on already struggling Nigerians.

Telecom industry expert, Dr. Segun Ajayi, opined that while a tariff adjustment may be necessary, the manner in which it is implemented is crucial. “There should have been more transparency and consumer engagement before rolling out new pricing. The NCC must ensure that telecom operators adhere strictly to regulatory processes to maintain public trust.”

Similarly, economic analyst Dr. Ifeoma Okonkwo warned that abrupt price hikes could reduce consumer spending on telecommunications services, leading to potential revenue losses for operators in the long run.